Tech focused group Life House raises $30 million in Series B Funding

Miles Hurley Miles Hurley Uploaded 24 January 2020

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US: Travel-tech investment firm Thayer Ventures has just placed $30 million of funding into tech driven hotel company Life House.

Thayer Ventures led the funding round, which included participation from investors such as JLL Spark, Sound Ventures, Tiger Global, and several strategic investors like hotel owners David Hamamoto and Jim Ketai.

The New York-based Life House differs from many other boutique brands by keeping software solutions at its core. Its proprietary software automates financial accounting and reporting, pricing management, reservations and staff management. 

It also offers its tech solutions for direct sale, which it says can drive a 40 per cent rise in profitability. 

CEO Rami Zeidan said of his brand's expansion: "Consumers are underserved, and software is a big crux of the equation to solve the problem."

The business currently focuses on small hotels, operating five, with two under the Life House brand, but intends to expand with the influx of capital. It hopes to reach 25 properties by early next year.

Chris Hemmeter, managing partner at Thayer Ventures, said: "We, like many other investors, were immediately enamored with the company and team that Rami has built. Our connections and LP-base in the hotel space are deeply rooted, and after a thorough vetting, we became even more excited. We're very excited to be partnering with Rami and his team and we're pleased that they recognised our value-add and selected us to lead at the prudent terms we offered."

Hemmeter noted similarities between the tech centred models of OYO and Life House, although with key differences. He notes that Life House's asset light approach allows flexibility and independence on each hotel project.

This may be good news for Life House, as OYO's capital hungry model may not be secure: it recently laid off hundreds. The company has committed to changing its model, but with Life House raising money, its tech forward approach may soon be seeing a real competitor.

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